1. End of Year Savings

    November 15, 2016
    Section 179 and Bonus Depreciation Available for 2016 Purchases

    Do not let the year slip by without taking advantage of special tax benefits on new and used equipment purchases. Both Section 179 and Bonus Depreciation have been approved for a limited time through December 31, 2016. In order to qualify for these tax breaks, you must purchase or finance your equipment by December 31, 2016.

    Rig Source has a complete inventory of drill rigs and crawler carriers ready to start working on your next jobsite project. We offer sales on both new and used equipment in order to meet the needs and budget of every customer. Within our own shop, we specialize in servicing the industry leading, brand name equipment you’ve come to rely on, and even work direct with manufactures on customizations. Our dedicated sales team is knowledgeable in every type of drilling and can work with you to build a rig to suit.

    Understanding The Benefits

    2016 Deduction Limit = $500,000

    • This deduction is good on new and used drill rigs or crawler carriers, parts and other business assets.


    2016 Spending Cap on Equipment Purchases = $2,000,000

    • This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis.

    2016 Bonus Depreciation = 50%

    • Bonus Depreciation is only available on new equipment, and is generally taken after the Section 179 Spending Cap is reached.

    Section 179 and Bonus Depreciation Chart

    At a 35% tax rate, tax savings would be $206,500.00 ($590,000 x 35% tax rate)

    For more information on equipment eligible for Section 179 or Bonus Depreciation tax credits, give Rig Source a call at 630.365.1649.

    *For more information regarding the details of Section 179 and Bonus Depreciation, please contact your local government agency and tax advisers.



  2. Changes to Pay Attention to in 2016

    February 5, 2016

    2016 Laws Expected to Affect Customers2016 marks a big year of change for laws that have potential to affect many of our drill rig and crawler carrier customers. New laws have gone into effect, and some previous laws are set to be enforced by the end of the year. As your trusted equipment supplier we analyzed these changes to determine how they could affect you. We want our customers to be fully informed so they can continue to make the best decisions and equipment purchases for their growing business.

    Section 179 – Bonus Depreciation

    First and foremost, are you aware of the latest changes to Section 179 tax deductions for equipment purchases? While Section 179 has been available in the past, the rules have changed. This year both the House and Senate passed “Protecting Americans from Tax Hikes Act of 2015” which permanently increased Section 179 tax deduction limits to $500,000, and extended 50% bonus depreciation through 2019. Prior to this law taking place, Section 179 was temporarily approved on an annual basis. The temporary re-approvals were nice, but they didn’t provide equipment buyers adequate time to complete equipment purchase transactions in time to qualify for the deduction. Therefore, the permanency of Section 179 is ideal for our drill rig and crawler carrier customers seeking to purchase equipment now and in the years to come. The new law gives buyers the time they need to plan and forecast equipment needs, shop for the right equipment, and feel confident the Section 179 tax deduction is going to be there for them.

    Oil Export Ban Lifted

    Forty years later, the US ban on oil exports has been lifted! This is exciting for our customers within the oil and gas and pipeline industries.  It is expected that this lifted ban will expedite a higher demand for the US to grow our oil transport infrastructure, and in return open up thousands of new job opportunities for industry members. Keep in mind environmental protection is still of utmost importance while we grow the US infrastructure so it is imperative for contractors to remain conscious of environmentally friendly practices while on jobsites. Taking action by utilizing heavy equipment like crawler carriers which are known for leaving behind some of the smallest environmental footprint is one way you can help protect the ecosystem.

    Tier 4 Emissions Standards

    The Environmental Protection Agency (EPA) introduced Tier 4 engine emission standards back in 2004, and has allowed a phase-in period for manufacturer compliance which is largely coming to an end in 2016. The purpose of the Tier 4 engine standards by the EPA is to reduce engine emissions in an effort to comply with stricter Clean Air Act guidelines. What you need to know as an equipment consumer is equipment already utilizing Tier 4 engines also comes with a heftier price tag. Additionally, Tier 4 engines may use different fuel which increases the amount of maintenance required to uphold the equipment. To date, many equipment manufacturers have already conformed to the new Tier 4 engine standards leaving it very difficult to come across Tier 3 equipment still in production.  However, there are some manufacturers like Terramac® who are still offer offering Tier 3 models through the remainder of 2016. Therefore, if you are looking to add to your equipment fleet, 2016 may be good year to do so in order to take advantage of Tier 3 options that will soon be no longer be available.

    *This is a brief overview of the laws that have potential to affect our customers this year. For more information regarding the details of these laws, please contact your local government agency and tax advisers.

    Sources:

    1. The Section 179 Deduction. (2016, January 1). Retrieved from http://www.section179.org/
    2. Speaker Ryan Press Office. (2015, December 15). Lifting the Oil Export Ban: By the Numbers. [Blog Post]. Retrieved from http://www.speaker.gov/general/lifting-oil-export-ban-numbers
    3. Associated Equipment Distributors. (n.d). Clean Diesel Technology For Off-Road Engines and Equipment: Tier 4 and More. Retrieved from http://www.aem.org/PDF/DTF_Tier4WP_FIN.pdf


  3. Crawler Carrier Uses Broken Down by Region & State Continued – Part 3

    October 30, 2015

    Welcome back to part three of our series covering the use of crawler carriers across various regions of the US. Click on the links provided to catch up on the Western Regions or Mid Regions of the US. Otherwise, read on and enjoy learning about crawler carrier usage along the Eastern regions of the US.

    Travel the Eastern Regions of the US on Tracks

    New England Region – Encompassing the states of Connecticut, Maine, Maryland, Massachusetts, New Hampshire, Rhode Island & Vermont.

    • New England is one of the most historic regions of United States, and with that comes an older infrastructure requiring a great deal of maintenance and repair. Crawler carriers benefit the New England region by providing the local industries with reliable equipment capable of adapting to the various seasons and infrastructure needs such as pipeline repair, environmental restoration, and utility maintenance. The most commonly sought after crawler carrier attachments for this region are standard dump beds, tac welders, water tanks, pipe heating units and more.

    Mid-Atlantic Region – Encompassing the states of Ohio, Pennsylvania, West Virginia, New Jersey & New York.

    • The Mid-Atlantic Region is truly the heart of pipeline work for the Unites States because it contains the Marcellus and Bakken Shales. The Marcellus Shale is the largest source of natural gas in the United States so it is no wonder that crawler carrier usage is at its highest rate for the country in this region. Crawler carriers are used in every step of the pipeline process; beginning with utility locating and finishing up with land restoration. Top attachments used for crawler carriers across the entire Mid-Atlantic Region include, vacuum excavators, water tanks, cranes, tac welders, personnel carriers, compressors, hydroseeders, bark blowers and straw blowers.

    South-Atlantic Region – Encompassing the states of Delaware, Virginia, North Carolina & South Carolina.

    • The South-Atlantic Region is a hot spot for a multitude of industries, and crawler carriers are used routinely due to their versatility across a wide variety of terrain conditions. This region includes the Appalachian Mountains and is also home of the Coastal Plaines. The Proximity to the Mid-Atlantic Region means pipelines are still among the top local industries to depend on crawler carriers, but the units are also being used for earth moving and excavation projects which require attachments such as hydroseeders, bark blowers, straw blowers and rock beds. As you travel into Virginia, the use of crawler carriers is also increasing for the utility market.

    Southeast Region – Encompassing the states of Georgia & Florida.

    • Surrounded largely by water from both the Gulf of Mexico and the Atlantic Ocean, the Southeast Region has found crawler carrier use a key tool for shoreline restoration as well as land reclamation. This is a tourist region so using low impact equipment like carriers that have low ground pressure assist both Georgia and Florida in preserving their environments for visitors. Pipeline projects such as the Sabal Trail Transmission are also expected to increased crawler carrier usage once the project commences in 2016. The last prominent use of crawler carriers for mention in the Southeast Region has been in utilities. Digger derricks and boom lift attachments are being mounted to the rear of crawler carriers more and more which is allowing easier accessibility to utility pole installation sites.
    Regional Wrap Up

    Crawler carrier usage among all regions in the United States has been on a tremendous upward growth pattern in recent years as more and more as technological advancements to crawler carriers have been introduced. Each new advancement has made work in these trade industries that much easier and safer than ever before. The adaptability of crawler carriers to hold various specialty attachments, and interchange them with ease also enhances productivity for employers by providing their workers with all the tools necessary, even in remote locations to continue working. There isn’t an industry out there that couldn’t benefit from crawler carriers, and as future uses come about and new attachments are developed – you can count on Rig Source to keep you informed and your fleet stocked!

    *Common Crawler Carrier Attachments Mentioned Throughout the Series: Standard Dump/Flat Bed, Dust Suppression Spray Boom, Fuel Tank, Rock Bed, Tac Welder, Personnel Carrier, Pipe Heating Unit, Compressor, Bark Blower, Hydroseeder, Water Tank, Knuckle Boom Crane, Geotechnical Drills and Straw Blowers.



  4. How Economies of Scale Produced the Big Oil Companies We Know Today

    October 27, 2015

    The term “economies of scale” might as well have been invented for the oil and gas industries. Think about how much it would cost to start a new company with the vision of prospecting and drilling for oil, refining it, and selling it as gasoline. It would cost you billions of dollars to sell that first gallon. But we know too that the oil and gas industries are highly profitable. In fact, even with oil prices slumping, oil and gas companies make up half of Fortune’s 10 largest companies.

    Looking at the actual scale of these companies, the numbers become staggering. Consider the following.

    • Collectively, the world’s 10 largest oil companies produce around 40 million barrels of oil per day. That’s enough to fill 2,543 Olympic sized swimming pools, or 40 million standard-sized American bathtubs.
    • The collective revenue of these companies in 2014 was $3.26 trillion. That’s greater than the GDP of the United Kingdom.
    • Oil and gas companies are also huge employers – Chinese-government-owned Sinopec, the world’s largest oil company, employed 358,571 people at last count. That’s over double the number of people employed by Amazon, worldwide.

    Of course, the “Big Oil” didn’t spring up overnight. As in all industries that benefit from economies of scale, the oil and gas industry has seen countless mergers and acquisitions. Read our infographic below to see how over a century of mergers and acquisitions have produced the world’s 10 largest oil companies.

    The mergers and acquisitions behind world’s largest oil companies.

    (more…)


  5. Crawler Carrier Uses Broken Down by Region & State Continued – Part 2

    August 17, 2015

    This is part two of a three part series that takes a look at crawler carrier usage across the different regions of the US. Click on the link to catch up on our previous post which covered crawler carriers in the Western regions of the US.

    Travel the Mid Regions of the US on Tracks

    The Great Plains Region – Encompassing the states of North Dakota, South Dakota, Nebraska, Minnesota, Iowa, Wisconsin, Illinois, Arkansas, Missouri, Michigan, Indiana, Kentucky & Tennessee.

    • Within this region, the three states of North Dakota, South Dakota and Nebraska which hold the Bakken Shale have extremely high crawler carrier usage rates. These states are expanding rapidly in the oil and gas market, and crawler carriers have been the all-in-one piece of heavy equipment capable of adapting to the multitude of jobs required for pipeline work. The remaining Midwestern states have also found various uses for crawler carrier’s rubber tracked technology, but among a broader group of industries, and are used more so for niche jobs when inclement weather hinders work sites. Industries have included mine reclamation, utility, general construction and excavation as well as pipeline work. Due to the variety of industry demands, this region uses one of the widest arrays of specialized crawler carrier attachments such as tac welders, personnel carriers, water tanks, cranes, spray booms, hydroseeders and standard dump beds.

    Southern Plains – Encompassing the states of Oklahoma & Kansas.

    • This region is best known as “Tornado Alley,” and has seasonal climates which make predicting and planning for outdoor work a struggle. Pipeline work is in full force in the Southern Plaines and therefore much like the Western regions becomes the most prevalent industry for crawler carrier use. Rubber track technology allows carriers to continue working even when the terrain is not in its best condition. Pipeline attachment features used in this area include welders, personnel carriers, and even standard dumps. While pipeline is the primary usage, states such as Kansas have found crawler carriers useful for the utility market for the installation of utility poles.

    Gulf Coast Region – Encompassing the states of Alabama, Mississippi, Louisiana & Texas.

    • Swampy, humid and wet conditions frequently noticed in the Gulf Coast region require the use of crawler carriers on a regular basis. This is a primary region for the Unites States oil and gas extraction so pipeline distribution is a major focus. Among the states included in the Gulf there is a high volume of crawler carriers being used for pipeline installation and maintenance as well as services assisting pipeline work such as potholing with track mounted vacuum excavators.

    For more information on crawler carriers in the Mid Regions of the US, give Rig Source a call today at 630.365.1649. Otherwise, stay tuned and follow the Rig Source news feed for part three, crawler carriers in the Eastern Region.



  6. Crawler Carrier Uses Broken Down by Region & State

    July 27, 2015

    Crawler carriers are making an impact among numerous industries across the United States, and their efficacy is being unraveled daily. Their impacts along with increased market exposure highlighting the benefits and value associated with crawler carriers are triggering increased popularity and demand at a fast pace. To top off the craze, new technological advancements in crawler carriers, and the introduction of a North American made unit – The Terramac® RT9, only increase the hype.

    As a dealer for top brand name Terramac® crawler carriers, and a well reputed used sales, rental and service provider of all brand name crawler carriers such as Morooka, IHI and Komatsu, we’ve analyzed our own crawler carrier sales and rental usage to give you a breakdown on exactly which industries are gaining the most from crawler carriers and sorted the data by region to demonstrate how various regions of the US differ with their crawler carrier use. Follow us in a three part journey as we travel the US on Tracks!

    Travel the Western Regions of the US on Tracks

    Northwest Region – Encompassing the states of Alaska, Washington, Oregon, Idaho, Montana, Wyoming, Utah & Colorado.

    • The Northwest region is often divided in two sub regions due to the Cascade Mountain Range. Within this division, it is noted that the far west states of Washington and Oregon find crawler carrier use a popular choice for dealing with the mountainous and often times wet terrain. This area is a hotspot for growing oil and gas pipelines since it is in close proximity to Canadian Shales as well as the Bakken. On the East side of the Cascades, pipeline work also plays a hefty role in crawler carrier usage, but crawler carriers are also being used frequently for mine reclamation and tailings pond maintenance. Common crawler carrier attachments found in the Northwest region include convertible dump/flat beds, personnel carriers, tac welders and dust suppression spray booms. Other industry uses in this region have included damn restoration and geotechnical drilling.

    Southwest Region – Encompassing the states of California, Nevada, Arizona & New Mexico.

    • States in this region are recognized for high copper production, and have both active and residual mines to show for it. Similar to the Northwest region, Mine Reclamation is in its prime as new environmental laws go into effect to protect the environment, and with that comes the increase demand for crawler carriers. Among the Southwest region, crawler carriers utilized for dust suppression on tailings ponds have taken the lead for usage in the region. California has also seen an increase of crawler carrier usage for exploration drilling, and due to the sandy conditions of the desert in this region they have become attractive to those in the utility market for their unstoppable rubber tracked technology. Common attachments found in the utility market include digger derricks, aerial devices and fifth wheel hitches in addition to the standard flat and dump beds.

    Island Region – Encompassing the state of Hawaii

    • The only state not attached to continental North America, Hawaii has less frequent crawler carrier use than the other states, but is a likely candidate for land excavation and reclamation, utilities and shoreline restoration. Hawaii is home to some of the world’s best beaches, varying altitudes and lavish rainforests. The use of rubber tracked equipment is ideal for sensitive terrain such as this to minimize environmental damage.

    That wraps up crawler carrier usage in the Western regions of the US so stay tuned and follow Rig Source’s news feed for the remaining Mid region and Eastern region updates.



  7. How to Find Mineral Rights

    May 4, 2015
    If You Strike Oil, Is It Yours? Mineral Rights Explained

    How to find out who owns the mineral rights on land that you own, or land you’re looking to buy.

    You may have struck oil, but do you have the rights to it? In most countries, mineral resources belong to the government; however, in the United States, ownership of underground minerals was originally granted to land owners.

    How to find out if the mineral rights have been severed from your surface rights.

    Of course, it’s not quite as simple as that- in fact, this creates a unique situation, in which ‘surface rights’ and ‘mineral rights’ can be sold separately. Surface rights are the rights to farm or build on the property, while mineral rights are the rights to use a property for the minerals it harbors, such as oil drilling, gas, gold, silver, and any other underground deposits. When surface rights and mineral rights are sold together, it’s called ‘fee simple.’

    So when you buy property, how do you know if you’re purchasing both the surface rights and the mineral rights, or if the mineral rights to your land have already been sold? (more…)



  8. Accidents Happen but Drill Rig Damage is Repairable

    March 31, 2015

    The next time you roll your trailer while hauling your rig – Rig Source to the rescue!

    Has anyone ever lost something out of a car window or worse watched an item fall off the back of a truck bed? How many of you have rolled your trailer while carrying your drill rig to its next destination? I can’t say that I’ve rolled a trailer, but watching my couch fly was a site to be seen. Regardless of the item you lose or damage in an accident, two things remain the same: 1) be glad you’re safe & 2) be prepared to repair or replace.

    True Stories of Drill Rig Accidents

    The fact of the matter is accidents do happen and unfortunately more often than we would like to admit. Rig Source has advised many customers who have encountered these types of drill rig accidents over the years but a couple recent accidents include a Geoprobe and a Diedrich drill rig.

    The first incident was a Geoprobe® 6620DT drill rig which took a spill similar to the ones described above. During the accident, the Geoprobe® withstood some damage such as bent parts that required repair before the unit could go back to work safely.

    Rig Source received the Geoprobe® 6620DT shortly after its accident and immediately inspected the unit for any and all possible damage. “The number one factor to consider during rig repairs is always safety. During our thorough inspections, we are able to find all problems, and require our customer’s to fix problematic findings prior to putting the units back to use,” says Mike Crimaldi, owner of Rig Source Inc.

    Therefore, after a full inspection, Rig Source went straight to work and fixed the damaged direct push unit using all genuine Geoprobe® replacement parts. To everyone’s surprise, the Geoprobe® 6620DT didn’t obtain as much damage as one would expect from an accident so our customer decided to do a few extra maintenance items while the unit was in the shop.

    Repaired Drill Rig Damage

    Geoprobe® 6620DT Repair List:

     

    • Replaced bent parts
    • Rewired fuse panel
    • Replaced cables, hoses & tracks
    • Oil change
    • Fresh paint

    The second drill rig accident occurred with a Diedrich D50 which rolled along with its trailer during transport. With this particular unit, the owners were not as lucky as the first. After Rig Source completed their inspection of the Diedrich unit, it was determined that the amount of repairs needed were far beyond the value of the unit. Similarly, our mechanics openly communicated safety concerns which could pose a threat to future drillers if the unit was to be repaired. For everyone’s well-being, rather than repairing this Diedrich D50, Rig Source opted to work alongside the customer to find them a replacement rig that was affordable and met their needs.

    Not everyone has the luck of the first customer mentioned, but with the experience our shop team has working on these rigs we can do some powerful repairs. Our guys are second to none, and are always there when you need them. Likewise, our team is dedicated to you so even if we recommend a drill rig to be scraped because we can’t safely put it back to work, our sales team will help you get back into the action with a replacement drill.

    What’s the worst accident you’ve encountered with your equipment? What kind of damage did you have? Give Rig Source a call today at 630.365.1649, and we’ll inspect and repair your drill rigs from top to bottom or replace them to get you back in safe working order in no time.



  9. Career Development in the Oil and Coal Drilling Industries

    March 9, 2015
    Your Future in Drilling: Career Development Tracks in the Mining Industries

     

    If you’re considering a career in the coal mining, oil, or gas industries, you might not have a clear picture of how your career will progress. Your education, goals, and salary desires can all affect what path you might take in your mining industries career. Let’s drill down into what arcs your career path might make.

    Possible career paths for workers in the oil and coal drilling industries.

     

    First of all, it’s important to note that all entry level positions in the mining industries are paid hourly, meaning that the estimated salaries in this infographic are conservative, given that many in the industry work more than a 40-hour week. Jesse Whittaker, a Sales Rep at Rig Source who grew up in West Virginia and has been working in coal mining since the age of 16, knows the reason behind this: unpredictability.

    “There is no standard day on a drill rig,” says Jesse. “You could work 8 hours in a day and everything would be fine, or you could have an issue in the hole and be there for 18 hours.”

    Most high school graduates will begin as a miner or laborer, earning from $37,000-45,000/year for operating heavy mining machinery, drill blasting holes, transporting coal, and laying out and building underground mines, according to Indeed. Most miners fall between the ages of 20-45, according to WiseGeek; with that in mind, working in the drilling industry may be ideal for a young person without a family at home, since the job requires so much time away from the family.

    Miners or laborers can advance to an equipment operator miner, whose job duties include safely and efficiently operating mining equipment. The top rung of this career path is foreman, where one can earn $80,000-89,000/year for supervising miners, meeting quotas, and maintaining an efficient work environment.

    College graduates searching for a job in coal mining can explore careers as geologists or mechanical engineers, depending on their interests. A geologist researches formation dissolution and content of rock layers, and he may also study variation in rock formation and densities. A mechanical engineer, meanwhile, earns $73,000-89,000/year for designing machines and mechanical installations, evaluating machinery, and setting up work control systems.

    From there, an employee can advance to the role of mine manager, which comes with a significant salary increase and additional responsibilities of staffing management, performance evaluation, and promotion of a safe work environment. While a college degree isn’t necessary for a mine manager, only 17% have a high school diploma as their highest degree (for comparison’s sake, 43% hold a Bachelor’s Degree and 27% hold a Master’s Degree).

    Finally, a college graduate’s career in coal mining might culminate as an executive operations manager or mine engineer, both high-level roles earning around $100,000/year. A mine engineer is responsible for planning and designing mines for maximum structural stability, while the executive operations manager leads and managers operation teams.

    A crucial requisite to working in the oil and gas industries is being physically strong. In these career fields, you’re required to 100-150 pounds of equipment regularly. The physical nature of jobs on drilling rigs isn’t for everyone.

    A high school graduate will begin in the oil and gas drilling industries as a hand on an oil drilling rig, conducting inspection on oil drilling equipment, assisting the driller during operations, and ensuring the accuracy of fuel inventories for around $40,000/year. From there, he will advance to a driller, ensuring compliance with all regulating bodies and supervising drilling activities such as core drilling or exploration drilling. Eventually, he may become a tool pusher, supervising daily drilling rig operations

    A college graduate, on the other hand, may enter the oil and gas industries as a petroleum geologist, gaining valuable experience and knowledge in rock formations and mineral samples that could eventually pave the way towards becoming a CEO. The next rung on the ladder is drilling operations manager, managing daily operations and planning various drilling projects, such as exploration drilling, and revising them as necessary. Finally, a drilling operations manager may be promoted to a drilling/petroleum engineer, specializing in the production and placement of wells, earning around $104,000/year according to Salary.com.

    No matter which career path a budding worker in the mining, oil, and gas industries may choose, there’s one thing necessary for career success: autonomy. Being able to work well on your own and being self-directed is key to advancing in your career in the drilling industry.

     



  10. Discount on Crawler Carrier Parts

    February 2, 2015

    Inventory is complete, and Rig Source has a surplus of carrier parts so let the savings begin.

    As of February 1st, Rig Source announced a large crawler carrier parts sale that would run throughout the entire month. During this limited time offer universal crawler carrier replacement tracks for brand names such as Terramac®, Morooka and IHI units are 10% OFF, and there are numerous BUY 3 GET 1 FREE offers on rollers, bushings, sprockets, pivot shafts and much more. If you were considering some general maintenance on your crawler carrier units this year, a sale like this is definitely worth taking advantage of.

    (more…)